Existing processes for the preparation of magnesium granules which are coated with a salt composition and used in the steel industry are exemplified by U.S. Pat. Nos. 4,186,000; 4,279,640; 4,384,887; and, 4,410,356. These processes employ many more steps than the presently contemplated process in that they apparently form discrete globules by stirring the molten magnesium/salt mixture to form discrete particles or globules of magnesium within the salt bath and allow the entire mixture to solidify. The salt coated granules are released from the cake by use of a hammer mill. Such a procedure leaves a thin coating of salt adhered to the magnesium. The salt in excess of that to coat the granule is circulated back to the process or discarded. Thus, the present invention saves considerable power and obtains more uniform granules.